Gold has come under considerable pressure of late and has dropped to a nine-month low.However, the slide in the gold price is excessive in the view of economists at Commerzbank, so the yellow metal is expected to recover.

Main factor weighing on XAUUSD is the firm US dollar

“The main factor weighing on gold price is the strong US dollar, which on a trade-weighted basis has appreciated to its highest level in nearly 20 years.” 

“ETF investors are turning their backs on gold. The gold ETFs tracked by Bloomberg registered outflows of around 60 tons in the past two weeks alone.” 

“We regard the current price weakness as exaggerated. The persistently high inflation and the risk of a recession argue in favour of gold, which suggests that the price will recover.”